Indiabulls to sell commercial properties to Blackstone for Rs 810 cr

Indiabulls Real Estate said on Monday it would sell its commercial properties in Mumbai and Gurugram to US-based private equity fund manager Blackstone for Rs 810 crore.

Indiabulls will sell its entire stake in Mariana Infrastructure, which owns a commercial office project in Gurugram. In Mumbai, it will sell a land parcel meant for commercial projects near its Blu property in Worli area. The property in Mumbai holds an enterprise value of Rs 675 crore.

This is part of the company’s plans to exit commercial properties and become debt free, a source in the know said. As of September 30, 2017, the company had a debt of Rs 1,783 crore. Indiabulls Real Estate has already sold its key commercial properties in Mumbai such as Indiabulls One and Indiabulls Finance Centre and properties in Che

znnai to Blackstone.

In June, Indiabulls Real Estate promoters sold 14 per cent stake in the company to Bengaluru-based Embassy Property Developments for Rs 950 crore as part of its strategy to exit real estate and merge with Laxmi Vilas Bank. However, the Reserve Bank of India turned down the bank merger proposal. Though Embassy had plans to buy more stake in the company, it has not done so yet.

Blackstone had been acquiring commercial properties since 2011. It spent over $6 billion on acquiring such properties. It is the largest owner of office properties and owns over 110 million sq ft of commercial properties along with its partners.

Blackstone, along with partner Embassy, floated the country’s first real estate investment trust (Reit) and its another joint venture with K Raheja Corp is also gearing up for a Reit.

Blackstone owns a portfolio of nine malls in the country and may go for a separate Reit, sources said. Investment in Indian real estate sector is estimated to have increased by 9 per cent to Rs 43,780 crore during this calendar year on higher inflow from foreign funds, according to global property consultant Colliers. Office properties attracted 46 per cent of the total inflow and received nearly Rs 20,000 crore this year. "Investment in India’s real estate rose 8.7 per cent in 2019 compared to 2018, and touched $6.2 billion (Rs 43,780 crore)," Colliers said in a report.

Shareholders okay IndiaBulls Realty's 200 mn pound London property sale

Indiabulls Real Estate on Saturday said shareholders have approved proposal to sell its London property to promoters for 200 million pounds in an annual general meeting held on September 28.

Earlier, the company had disclosed its plans to focus on its India business and cut down on debt.

The resolution to sell the London property has been approved by the requisite majority of shareholders, stated a BSE filing by the company.

In the notice for AGM, the company had said, "In light of continuing Brexit related issues and uncertainty around it, the London property market remains sluggish. The Great Britain Pound has also had a sustained depreciation from around the time of Brexit referendum result."

The continued uncertainty associated with Brexit continues to provide headwinds against both the London property market as well pound as a currency, it said.

As per assessment with lenders, a further loan of approximately 133 million pounds is to be availed to complete the ongoing construction on 22 Hanover Square property (London property) and the company would not like to incur this further additional debt on its own balance sheet, at this point, the statement said.

Explaining further, it had said, "To reduce the debt of the company and to have its more focus on Mumbai and NCR markets, the board of the company, had on earlier date already authorised and approved divestment of company's direct or indirect stake in London property."

It had also informed that the promoter of the company has come forward to acquire the London property for an aggregate consideration of 200 million pounds, which is significantly above the cost of its acquisition i.e. GBP 161.5 million and CBRE, UK recent valuation i.e. GBP 189 million.

HC seeks govt, RBI reply on plea for probe into fund 'misuse' by Indiabulls

The Delhi High Court on Friday sought response of the Centre and the RBI on a plea seeking an SIT investigation into the alleged illegalities, siphoning of funds and violations committed by the promoters of Indiabulls Housing Finance Ltd (IBHFL).

A bench of Chief Justice D N Patel and Justice C Hari Shankar issued notice to the central government, Reserve Bank of India and Indiabulls seeking their stand on the petition filed by an NGO.

The court listed the matter for further hearing on December 13.